Indonesia: May 1998 Political Crisis and Implications for U.S. Policy

Publication Date: May 1998

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Abstract:

After years of mounting political tensions and amidst acute economic difficulties, the shooting of students by Indonesian riot police and massive rioting in Jakarta, Indonesia’s capital, in May 1998 has moved the crisis into a more uncertain period. The political crisis centers on demands from anti-government activists, supported by large numbers of university students, for political changes including President Suharto’s resignation, a clarification of presidential succession, an end to corruption and economic privileges, open elections, and independence of parliament and political parties from government control. Another key issue is the influential role of the military in Indonesia’s politics and government. Several scenarios or outcomes are possible in the near term: a Burma-style military crackdown on anti-government elements, the initiation of limited political reforms by Suharto, action by the military to oust Suharto or reduce his powers, and a “peoples power” revolution. The new situation affects U.S. policy by bringing the issue of political reform into the center of U.S. decision-making and making the ability of the United States to influence the Indonesian military as the key determinant of U.S. influence. This report was written before President Suharto’s resignation and will not be updated.